The Cornucopia Institute has called for action by the U.S. Department of Agriculture (USDA) and the Federal Trade Commission (FTC) to stop what it alleges is the misleading practice of companies using the word “organic” in their names while selling foods not certified organic. In its April 22, 2010, letter to the USDA’s deputy administrator, the institute contends that the agency has the authority “to take enforcement action against the misuse of the term ‘Organic’ in company names.” It specifically cites Oskri Organics, Organic Bistro and Newman’s Own Organics as companies that sell a variety of food products some of which, but not all, are certified organic. According to the institute, this practice “is not only highly misleading to consumers, but also in violation of the organic standards.” The letter addressed to the FTC chair calls the practice a violation of unfair competition law and calls for a formal investigation…
Category Archives Federal Trade Commission
The Global Organization for EPA and DHA Omega-3 Fatty Acids (GOED) has apparently sought clarification from the Federal Trade Commission (FTC) about the letters sent to 11 companies that promote omega-3 fatty acid supplements as a benefit for children’s visual and mental development. According to GOED, FTC was not clear about whether it was concerned with claims on products containing short-chain omega-3 fatty acid (ALA) or long-chain omega-3 fatty acids (EPA and DHA). The organization also questioned FTC about the types of scientific studies that would be required to substantiate the claims. FTC reportedly told GOED that “claims about an effect (e.g. brain development) need to be substantiated by science on that effect (e.g. brain development)” and that the scientific evidence in support of a claim must be based on research conducted in the age specified in the claim. “That is, if the claim is specific to toddlers two years and…
The Federal Trade Commission (FTC) recently announced that it had sent warning letters to 11 companies that promote omega-3 fatty acid dietary supplements. The letters indicated that the companies should review their product labeling and packaging claims, as well as product advertising, to ensure that the claims are adequately substantiated. The commission’s issuance of these letters is significant because of the FTC’s action to regulate dietary supplement labeling claims, an area that has for nearly four decades been regulated by the Food and Drug Administration (FDA). Commission Takes Aim at Ad Links Between Omega 3 and Children’s Visual and Mental Development According to a February 16, 2010, press release, [FN 1] the FTC’s Division of Advertising Practices in January sent warning letters to 11 companies that promote supplement products containing omega-3 fatty acids intended for use by children ages 2 years and older. The letters reference an investigation the FTC conducted…
The Federal Trade Commission (FTC) has announced that it sent letters to 11 unnamed companies in late January 2010, warning that their promotions and product packaging for omega-3 fatty acid supplements may violate the law “by making baseless claims about how the supplements benefit children’s brain and vision function and development.” FTC apparently gave the companies until February 8 to respond and explain what they have done or will do to ensure they are complying with the law, that is, that their health-related claims “are substantiated.” FTC provides as an example of substantiation “well-conducted, clinical cause-and-effect studies demonstrating that the use of the combination of Omega-3 fatty acids provided in Product X, in the same dosage as provided by one serving of the product, improves or promotes brain function, cognitive function, attention span, intelligence, memory, learning ability, and visual acuity in normal children ages 2 years and older.” The agency…
The Federal Trade Commission (FTC) has issued a notice seeking public comments on a proposed set of self-regulatory guidelines submitted by i-SAFE, Inc. under the safe harbor provision of the Children’s Online Privacy Protection Rule. Comments must be submitted by March 1, 2010. The organization that prepared the proposed guidelines is a non-profit that for some years has partnered with industry to provide educational programs for children about online safety issues. It recently determined that it would become involved in assisting and licensing online “operators” with children’s online privacy issues. Among other matters, the i-Safe guidelines would (i) provide notice to parents about the information collected from children by i-Safe licensees, (ii) require verifiable parental consent for the collection of personal information from children; and (iii) provide parents with an opportunity to view the information collected and prevent its further dissemination. See Federal Register, January 13, 2010. In recent years,…
The Federal Trade Commission (FTC) recently hosted a forum titled “Sizing up Food Marketing and Obesity,” which heard proposals from federal agencies, consumer watchdogs and industry representatives for regulating food advertising to children. In addition to addressing new research, First Amendment issues and self-regulatory initiatives, the forum unveiled a set of proposed nutritional standards (SNAC PAC) developed by an interagency working group at the request of Congress. Co-authored by FTC, the Centers for Disease Control and Prevention, the Food and Drug Administration (FDA), and the Department of Agriculture, SNAC PAC sets out three standards designed to limit the marketing of foods to children ages 2 through 17. Standard I describes foods that “are part of a healthful diet and may be marketed to children without meeting Standards II and III,” including (i) “100 percent fruit and fruit juices in all forms”; (ii) “100 percent vegetables and vegetable juices in all…
A federal court in Connecticut has ordered the payment of $1.9 million in equitable restitution to consumers who purchased Chinese Diet Tea and Bio-Slim Patch in 2003-2004. FTC v. Bronson Partners, LLC, No. 04-1866 (D. Conn., decided December 4, 2009). The court determined in 2008 that the Federal Trade Commission’s (FTC’s) claims of false advertising against the defendants had merit and issued this ruling to explain the basis for its damages award and why it was not allowing any offsets to the defendants from the gross amounts they received for all of the products sold. Essentially, the court found that the defendants’ poor recordkeeping and legal precedent did not allow offsets for credit card refunds, bounced checks, operating expenses, or revenue generated by reorders, which defendants claimed represented satisfied customers. According to the court, reorders could also have represented customers who “had not yet achieved the results promised in the…
The Federal Trade Commission (FTC) has announced a December 15, 2009, public forum titled “Sizing Up Food Marketing and Childhood Obesity,” which will include panels of industry representatives, federal regulators, consumer groups, scientific researchers, and legal scholars. The forum will address (i) the progress of self-regulatory initiatives, particularly the food and entertainment industries’ responses to the 2008 FTC report, “Marketing Foods to Children and Adolescents: A Review of Industry Expenditures, Activities, and Self-Regulation”; (ii) current research on the impact of food advertising on children; and (iii) the statutory and constitutional issues surrounding governmental regulation of food marketing. In addition, representatives from FTC, the Food and Drug Administration, Centers for Disease Control and Prevention, and the Department of Agriculture will report on the status of recommended nutritional standards for foods marketed to children. See FTC Press Release, September 29, 2009.
People for the Ethical Treatment of Animals (PETA) has filed a new complaint with the Federal Trade Commission (FTC) claiming that the California Milk Advisory Board “is deliberately misleading consumers by advertising in its sales-promotion campaigns that cows on California dairy farms live in ‘comfort,’ are ‘very well cared for,’ and are ‘happy.’” According to the animal rights organization, “these statements do not stand up to even passing scrutiny.” An organization spokesperson alleges that, “conditions commonly found on California’s factory dairy farms have been scientifically proven to cause cows extreme physical pain and mental distress.” According to a news source, PETA filed a similar complaint with the FTC in 2002, but it was not resolved. PETA apparently claims that its new complaint is necessary because conditions have worsened on California dairy farms. The organization has also reportedly filed litigation over the issue, but the lawsuit was dismissed when the courts…
The Federal Trade Commission (FTC) has updated its guidelines on product endorsements and testimonials to include those who use social media, such as blogs, Facebook® and Twitter®, to promote products in exchange for payment or free products. The guidelines, effective December 1, 2009, could result in penalties of $11,000 if violated and will require disclosures of commercial relationships. Even individuals submitting reviews to online stores, such as Amazon.com, will be covered by the new guidelines. Under another change to the guidelines, advertisers will no longer be able to use the safe-harbor disclaimer, “Results not typical,” but will instead be required to “clearly disclose the results that consumers can generally expect,” if they make a claim about consumer experience with a product or service as typical when this is not the case. According to FTC, “The Guides are administrative interpretations of the law intended to help advertisers comply with the Federal…
